Hotels and Resorts in New Zealand - Industry Market Research Report

Hotels and Resorts in New Zealand - Industry Market Research Report

Hotels and Resorts in New Zealand

Since the COVID-19 outbreak in March 2020, hotels and resorts have struggled through an unprecedented period of volatility. Tourism activity in New Zealand collapsed, following the Central Government's (Te Kawanatanga o Aotearoa) decision to close New Zealand's international border from March 2020 to June 2022. This restriction forced hotels and resorts to shift their focus towards the domestic guest market. Although intermittent lockdowns at both national and city levels in the 2020 and 2021 calendar years also restricted domestic travel. A steep decline in business, domestic and international traveller volumes caused a period of very low occupancy rates at hotels and resorts in New Zealand. This trend severely affected industry-wide profitability, as most hotels and resorts struggled to cover their fixed costs. Overall, revenue is expected to decline by an annualised 3.7% to $1.6 billion over the five years through 2022-23.

Hotel and resort operators generate most of their revenue from providing accommodation, but they also generate revenue by providing additional services, like selling food and beverages. Industry establishments are typically more expensive than other accommodation options, like motels, because of the greater number of facilities and amenities on offer.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.